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Nonmunicipal Customer Loses Rate Case
Publication year - 1997
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1997.tb08169.x
Subject(s) - annexation , capital (architecture) , real estate , business , capital city , finance , payment , service (business) , real property , economics , law , economy , geography , political science , economic geography , archaeology , politics
West Capital Associates owned property, a small part of which was within the city limits of Annapolis, Maryland. West Capital's property was annexed by the city in 1994, but in 1985 annexation has been precluded. West Capital wanted the city to supply water and sewer service to the property. The city code authorized service to customers outside the city limits at rates equal to those charged to city residents if the customer made annual payments in amounts equivalent to city real property taxes. On that basis the parties agreed in 1985 to a water and sewer service contract from the city. West Capital paid the fees from 1986 through 1992. For 1993 and 1994, it refused to pay the real estate tax equivalent and, in fact, demanded a refund of $175,000 for all such fees it had previously paid. The city rejected the claim and sued West Capital for breach of contract. The trial court ruled for the city.